The Reserve Bank of India (RBI) has reportedly summoned IL&FS shareholders for a meeting on September 28
Infrastructure Leasing & Financial Services (IL&FS), which is facing liquidity challenges for almost a month, may find some relief as the National Highways Authority of India (NHAI) may soon transfer Rs 700 crore to its subsidiary for a road project, The Financial Express reported.
IL&FS Transportation Networks (ITNL) has claimed Rs 700 crore for a road project in Maharashtra, the report said. The settlement amount awarded by NHAI's conciliation committee may be slightly lower than what contractors claim, a senior NHAI official told the paper, adding that the settlement talks are in advanced stages.
Under the reconciliation process, there is no scope for further appeals which can potentially delay the award of the settlement amount.
Read: SIDBI may file a case against IL&FS for defaulting on its term repayment: Report
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On September 18, NHAI had paid Rs 425 crore to ITNL. The move may provide some relief to IL&FS as the firm has already defaulted on interest payments on commercial papers for the third time in a month.
Read: Lenders, shareholders may come to the rescue of debt-laden IL&FS
According to data from Value Research, IL&FS was due to pay Rs 197.29 crore to LIC Mutual Fund as well as make 5 more payments to Principal Mutual Fund totalling Rs 73.97 crore. Earlier this month, the group defaulted on a Rs 1,000 crore short term loan from Small Industries Development Bank of India (SIDBI), while a subsidiary also defaulted on dues worth Rs 500 crore.
As on March 31, IL&FS’ total outstanding debt stood at Rs 91,091.31 crore at the group level, with most operating assets with its subsidiaries. Around Rs 5,756 crore worth of debt is due for repayment in the next 1 year.
Also see: Opinion | IL&FS mess highlights the rot in infrastructure financing space
The Reserve Bank of India (RBI) has reportedly summoned IL&FS shareholders for a meeting on September 28, a day before the firm's annual general meeting.
The government has asked the NHAI to clear IL&FS’ dues at the earliest, the report said. The NHAI official, however, told the paper that they are not waiting for any directive from the government.